Bajaj Auto has announced its fourth quarter results. The company’s results are better than stocks market expectations. Volume has shown 25 percent growth on year-on-year basis. The company is going to launch new models in the premium and electric vehicle segments. This will support the company’s volume in the coming times.
Despite weak sentiment in the market, HDFC Life Insurance showed strength. The company’s net profit in the March quarter has increased by 14 percent on year-on-year basis.
Banking Stocks are no longer as hot as they were two years ago. The reason for this is pressure on net interest margin. Rising deposit costs have put pressure on net interest margins. However, the situation is improving. But, at present the picture is mixed. According to IIFL, India’s deposit growth is not only increasing but it is higher than many other countries. In fact, the loan to deposit ratio has increased in India as compared to other countries.
It can be said that deposits are coming to the banks, which they are using to meet the demand for loans. The good thing is that liquidity is increasing in the system. Bank deposits are earning more interest than other savings instruments. The bad news is that the savings of families is decreasing. Savings money is going into other instruments, especially mutual funds.
LTI Mindtree
The stock of LTI Mindtree has been under pressure for some time. The market is concerned about integration issues after the merger process. Many exits have been seen at high levels in LTI Mindtree. Bulls say 30x valuation on 12-month trailing earnings does not look expensive. Brokerage firm Macquarie has said in its report that the company is fundamentally strong. On the other hand, bears argue that the challenges related to integration will impact the stock for some time to come. The valuation is also not very attractive. The outlook for the IT sector is not very good. In such a situation, investors would like to wait before investing in this stock.
ONGC
ONGC stock failed to maintain the gains made earlier this week. Big brokerage firms like Jefferies and Morgan Stanley are positive about this stock. Rising crude oil prices will increase ONGC’s earnings. Morgan Stanley believes that the company’s better performance will continue due to better capital allocation.
Bajaj Auto
Bajaj Auto’s March quarter results were better than market expectations. Volume increased by 25 percent year-on-year to 10.6 lakh. Bajaj Auto is going to launch new models in premium and electric segments, which will support the volume. Bearers’ argument is that despite PLI restriction Get AF, EV 2 wheelers are incurring losses.
Angel One
In the March quarter, Angel One’s net profit increased by 27.3 per cent year-on-year to Rs 340 crore. Bulls say that the company is changing its business model. The company’s focus is on increasing market share in the cash segment. Besides, it also wants good growth in distribution revenue. Brokerage firm Motilal Oswal has said this in its report. Angel One is also continuously investing in technology to strengthen its position in the market. On the other hand, bears argue that the entry of Jio Financial and BlackRock in the broking segment may reduce the market share of Angel One.
HDFC Life Insurance
Despite weak sentiment in the market, HDFC Life Insurance showed strength. The company’s net Get AF profit in the March quarter has increased by 14 percent on year-on-year basis. This is more than market estimates. Nuvama’s analysts have said in their report that the company’s management is confident of good performance. Its focus is on growth rather than margin. Bears argue that product mix and fixed costs have impacted margins in the fourth quarter.
